The European Commission said Tuesday it had unconditionally approved the proposed acquisition of Intelsat by Luxembourg’s SES.
While video leases are in decline, it remains a part of the satellite mix, with the attraction of a European rival to Elon Musk’s Starlink broadband-by-satellite system a carrot for the financial markets.
“The Commission concluded that the transaction would not raise competition concerns in the European Economic Area,” the EU executive said in a statement.
SES will acquire 100% of the equity in Intelsat Holdings S.a.r.l. for €2.8 billion. The transaction is projected to generate €2.4 billion in synergies, with 70% expected to be realised three years after completion.
The merged entity will remain headquartered and domiciled in Luxembourg while maintaining a significant presence in the United States, particularly around Intelsat’s current base in Washington DC.
